Profile picture for isab28

I want to buy land on which the current home needs to be torn down what kind of mortgage do I need?

The property has a house that is in disrepair and we would not be able to live there right away. I do not want a 203k. I would like to take my time and use earned income to do the necessary work. I also plan to add horse stalls to rent out and start a csa on the property. Both of which would earn income. Can I get some kind of specialized loan because I plan to use the property to live and work on?
  • March 25 2011 - US
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Answers (5)

Profile picture for Audrey TannerSeebold
I have an acre+ of land in Danville Pa for sale as well.  It has a house on that needs to be torn down.
  • March 10 2012
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Profile picture for Audrey TannerSeebold
I have an acre+ of land with a house on and it needs to be torn down...it is for sale in Danville, Pa has well and sewer.
  • March 10 2012
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If you can, you should buy the land all cash, and then look for construction (tear down-ground up) type of a loan.

It is not that simple, cause construction lender will look at your LTV vs LTC ratios. If you need an explanation of above, contact me.

Then, depending on your credit, property use, job stability and income/liability ratios and few other factors, there might be a loan for you.
And the use of land, as a commercial, income producing enterprise might create additional issues.

Good luck
  • March 25 2011
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Your criteria doesn't match with the traditional guidelines.  Most likely you'll need a Private or Hard Money loan.
  • March 25 2011
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No bank will lend to you based on those plans.  Too much risk.

  • March 25 2011
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